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Interested in Tax-free Bond Financing and/or Enterprise Zone incentives? Listen in as UIRVDA’s Assistant Executive Director reviews the eligibility criteria for UIRVDA programs and use cases in Lake County, Illinois.

An enterprise zone is a specific
area designated by the State of Illinois in cooperation with a local government to receive various
tax incentives and other benefits to stimulate economic activity and neighborhood revitalization.

The Federal Tax Code allows some private companies to receive favorable financing or municipal financing that is generally reserved for units of government like cities and counties. The Code requires that a governmental body act as an “issuer” of bonds on behalf of private entities like manufacturers and housing developers.

Industrial Revenue Bonds (IRBs) are debt instruments issued by units of government to assist manufacturing companies in financing the acquisition of land, buildings, equipment, new construction or renovation.

The term Gap Loan is best described as a second mortgage. In a normal business lending structure, the applicant would borrow money form a local bank and then pay for the remaining funds needed from his own resources.

When Congress passed the Federal Tax Code, it felt that there were certain activities that were so important to the welfare of the United States economy that they should be able to receive tax free income, like airports, mass transit districts, etc.

In the early 1990s the State of Illinois created several Regional Development Authorities (RDA). Theses were in addition to the state-wide authorities such as the Illinois Housing Development Authority (IHDA) and the Illinois Finance Authority (IFA) that provided bond financing for certain types of projects (i.e., IHDA bonded housing deals and IFA bonded manufacturing deals, etc.).